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IFRS Interpretations Committee meeting — 13 June 2017

Start date:

End date:

Location: London

Overview

The IFRS Interpretations Committee met in London on Tuesday 13 June 2017. The Committee discussed 11 issues — one on-going, five previously issued agenda decisions, and five new.   

On-going discussions

The Committee recommended to the IASB that it finalise its narrow-scope amendments to IAS 23 Borrowing Costs in relation to completed qualifying assets.

Finalisation of draft agenda decisions

The Committee considered the public feedback on five matters which it had tentatively decided not to add to its agenda:

  • IAS 41 Agriculture: Fair value of biological assets growing on bearer plants (Agenda Paper 6A)
  • IAS 19 Employee Benefits: Discount rates (Agenda Paper 6B)
  • IAS 33 Earnings per share: Tax consequences of dividends on participating equity instruments (Agenda Paper 6C)
  • IFRS 9 Financial Instruments: Clearing broker and centrally cleared client derivatives (Agenda Paper 6D)
  • IFRS 9 Financial Instruments: Modifications — exchanges of financial liabilities (Agenda Paper 6E)

The Committee decided to finalise four of them. There was insufficient support from committee members to finalise the decision on IFRS 9 Financial Instruments: Modifications — exchanges of financial liabilities (Agenda Paper 6E). The matter was referred back to the IASB.

New issues

There were four new issues:

  • IFRS 3 Business Combinations: Acquisition of a group of assets (Agenda Paper 2)
  • IAS 38 Intangible Assets: Goods acquired for promotional (Agenda Paper 3)
  • IAS 37 Provisions, Contingent Liabilities and Contingent Assets: Costs considered in determining whether a contract is onerous (Agenda Paper 4)
  • IAS 28 Investments in Associates and Joint Ventures: Associate or joint venture and common control (Agenda Paper 8)

In each case the Committee tentatively decided not to take the matter onto its agenda, although in two cases only by a narrow margin. The IASB will issue tentative decisions for public comment.

The Committee also considered how to account for a change in accounting policy as a result of an agenda decision by the IFRS Interpretations Committee. The staff are recommending a small amendment to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. (Agenda Paper 5) The committee was generally supportive of the approach suggested by the staff, but had some reservations.

Agenda for the meeting

TUESDAY, 13 June 2017

Morning session (09:30-13:10)
  • Opening remarks, administrative matters, and May IFRIC Update
  • New issues:
    • IFRS 3 — Acquisition of a group of assets
    • IAS 38 — Goods required for promotional activities
    • IAS 37 — Costs considered in determining whether a contract is onerous
    • IAS 8 — Changes in accounting policies

Afternoon session (14:10-17:35)

  • Agenda decisions to finalise:
    • IAS 41 — Biological assets growing on bearer plants
    • IAS 19 — Discount rate
    • IAS 33 — Tax arising from payments on participating equity instruments
    • IFRS 9 — Clearing broker and centrally cleared client derivatives
    • IFRS 9 — Modifications/ exchanges of financial liabilities
  • Deliberation of comments received:
    • Annual Improvements 2015–2017: IAS 23 — Borrowing costs on completed qualifying assets
  • New issues:
    • IAS 28 — Associate or joint venture and common control
  • Administrative session — Work in progress

Agenda papers for this meeting are available on the IASB's website.

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